Market Briefing: Dollar Shows (Tentative) Signs of Exhaustion
The dollar bull is looking tired, but is not ready yet to keel over. With idiosyncratic issues hitting the yen and yuan, losses in the trade-weighted greenback still look relatively modest, but an improvement in global risk appetite is helping the pound, euro, and high-beta currencies inch higher ahead of the North American equity market open—and weakness could become more entrenched as signs of a maturing rate cycle begin to emerge against a sparse data backdrop. The pound is trading within a consolidative range, with yesterday’s wholesale reversal of the government’s fiscal plans continuing to offer support – even as...